Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (8) TMI 997 - SUPREME COURT

2015 (8) TMI 997 - SUPREME COURT - 2015 (323) E.L.T. 3 (SC) - Prohibition on import of Palm oil Violation of Article 14 Vide Notifications No. No.39 and 63 (RE-2007)/2004-2009 import of palm oil was prohibited through all ports of Kerala Appellants challenging validity of these Notifications on ground that they were ultra vires provisions of Section 3 of Foreign Trade (Development and Regulation) Act, 1992 and unconstitutional as offending Article 14 of Constitution Held that:- Since imp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hus, it cannot be said that notification was violative of Article 14 of Constitution No material produced on record to show how impugned Notification would affect interests of consumers Section 3 empowers Central Government to make provision for: (i) prohibiting; (ii) restricting; or (iii) otherwise regulating 'the import or export of goods or services or technology', such action cannot be arbitrary or irrational and should be backed sound reasons Calcutta High Court in Kalindi Woolen Mill .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Respondent : Mr. B. Krishna Prasad JUDGMENT A. K. Sikri, J. Vide Notification No.39 (RE-2007)/2004-2009 dated 16.10.2007, the Central Government (respondent No.1 herein) prohibited the import of palm oil through Kochi port in Kerala. It was followed by another Notification No.63 (RE-2007)/2004-2009 dated 24.12.2007 whereby the import of palm oil has been prohibited through all the ports of Kerala. These Notifications were issued by the Central Government in exercise of powers conferred by S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

peal before the Division Bench of Kerala High Court, but unsuccessfully, as these appeals have also been dismissed. It is clear from the above that the issue involved in all these appeals are identical. This was the reason for clubbing these appeals so that they could be heard analogously and decided as one batch. However, for the sake of convenience, we will be referring to the facts from Civil Appeal No.4027/2009 as well as the impugned judgment dated 21.10.2008 which is impugned in the said a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

from where it used to be transported by road to its main factories which are in Kozhikode and Malappuram, in the State of Kerala itself. The impugned Notifications have prevented them from importing crude palm oil through the ports of Kochi and Beypore. Instead, they are forced to import this raw material through the ports outside Kerala. The effect thereof is that distance from the ports of import to the factories of appellants in Kerala stands increased, in contrast with the situation prevaili .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

port . This Notification was amended thereafter with the issuance of Notification No.63 (RE-2007)/2004-2009 dated 24.12.2007 in respect of same items by enlarging the scope of restriction/prohibition with the stipulation: import not permitted through any port in Kerala . 4. Again, as already pointed out above, these Notifications were challenged on two grounds, viz.: (i) The Notifications are issued purportedly in exercise of powers under Section 5 read with Section 3 of the Act, but these provi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tions and, therefore, they offends the equality clause enshrined in Article 14 of the Constitution. 5. Both these arguments have been repelled by the High Court which has found not only complete justification and rational in issuing such Notifications, it has also held that power for issuing such a Notification can be traced to the provisions of Section 3 of the Act. Before us, the appellants have raised the same arguments and in the process also, submitted that the High Court has not considered .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vits in support of these Notifications. We would, however, like to record that in the impugned judgment the discussion on this aspect is contained in detail as well. 6. State of Kerala is the largest producer of Coconut which is the raw material for the production of coconut oil. Coconut oil and palm oil are competing products. For production of palm oil, crude palm oil is the raw material which is largely imported. Since the import price of crude palm oil is much less than the price of coconut .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

39;) which takes care of the interests of the farmers growing Coconut crop and also takes initiatives and steps for the development of this crop. 7. The significant and marked difference between the price of coconut oil and palm oil manifested the fact that percentage difference between the two stood at 109% in the year 2004, reduced to 50% in December, 2006, to 12% in September 2007 and 0.6% in October 2007. The Board also observed that the import of palm oil in one particular year had a cascad .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ber of small time farmers in the State of Kerala. Such concerns were raised by the Board as well as Union of Coconut Farmers with the concerned authorities including Chief Minister, who in turn, took up the matter with the Central Government at the highest level. The narratives in this regard are stated in the impugned judgment of the High Court itself and the discussion goes, somewhat, in the following manner: A letter dated 15.08.2005 was written by All Kerala Coconut Farmers' Union to inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nclosing a copy of the letter from All Kerala Coconut Farmers Union, Thrissur to increase minimum support price of coconut oil and to cut import of coconut and coconut oil into the country and in that letter a request is made to JDGFT to offer their comments, if any. The Chairperson of the Board by her letter dated 06.12.2006 addressed to Director General of Foreign Trade (DGFT) seeks restrictions/prohibition on the import of coconut oil and coconut oil cake and the reason being slump in the pri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

followed by another letter by Hon'ble Commerce Minister to Commerce Secretary requesting the action on the letter of the Board dated 06.12.2006. Then, the another crucial letter dated 08.05.2007, wherein the Deputy Secretary, Ministry of Commerce forwarded a report of the Centre for Development Studies on import of palm oil on the coconut economy in Kerala to DGFT for its views on the detrimental effect of import of palm oil on coconut prices. In the report, the Centre for Development Studi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ute these oils in their use as edible oils. As such the possibility of palm oil imports having a dampening effect on coconut oil prices cannot be ruled out . This is the report of the independent agency set up to make a detailed study on the effect of import of palm oil on the coconut economy in the State. They have given a gloomy picture of the whole scenario in regard to the importation of palm oil into the State and what would be its impact on the coconut oil industry in the State. The report .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the coconut oil industry in the State. 8. This prompted Ministry of Agriculture to write a letter to the Prime Minister's Office wherein reference was made to the communications received from Chief Minister of Kerala and the Chairperson/Board mentioning about the declining wholesale price of coconut oil on the one hand and increase in wholesale price of edible oil, on the other hand, which are causing hardship to the coconut farmers. In this letter, it was also stated, that considering the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e palm oil should not be reduced further, since it may have adverse impact on the livelihood of oil seed growers, particularly the coconut farmers of Kerala as pointed out by the Chief Minister of Kerala. This was followed by the letter dated 03.09.2007 by the Director of Statistics to the Director General of DGCI and seeking import data of palm oil for last three years in the case of Cochin, Tuticorin, Mangalore and Chennai. This was followed by the fax message requesting the Chairperson to cla .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e representatives of the coconut farmers with various Ministries including the Hon'ble Prime Minister. (b) Letter dated 06.12.2006 by the Chairperson of Coconut Development Board addressed to Director General of Foreign Trade (DGFT). (c) Letter dated 19.04.2007 by the Hon'ble Chief Minister addressed to the Hon'ble Prime Minister. (d) Letter by Hon'ble Commerce Minister to Commerce Secretary. (e) Letter dated 08.05.2007 by Deputy Secretary, Ministry of Commerce. (f) Report of Cen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

itutes, many consumers tend to substitute these oils in their use as edible oils. As such the possibility of palm oil imports having a dampening effect on coconut oil prices cannot be ruled out. On analysing the report, the High Court has made the following remarks: This is the report of the independent agency set up to make a detailed study on the effect of import of palm oil on the coconut economy in the State. They have given a gloomy picture of the whole scenario in regard to the importation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

letter of the Hon'ble Chief Minister and the letter of Chairperson of Coconut Development Board, they are only referring to the plight of the coconut farmers in the State, in view of large scale importation of palm oil which is being used as a substitute to the coconut oil by the poor and middle class families in the State as an alternate for their day to day need of edible oil and this was precise reason for the Central Government to issue the impugned notification in the public interest a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f palm oil through the ports of Kerala would bring no succour to the coconut oil prices. In support of this submission, he referred to the pleadings in para 6 of the writ petition tabulating the prices of coconut oil and palm oil respectively from time to time with endeavour to point out that there is nothing common as far as prices of the two products are concerned. He further submitted that in the counter affidavit filed by the Union of India, the figures shown in para 6 of the writ petition w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed it without suitably dealing with the same. He also submitted that the interest of the consumers was equally important and if the prices of the palm oil are increased upwardly because of increase in transportation cost etc., consumers would also be adversely effected and, therefore, the decision was not in public interest. 11. Having regard to the material that is produced and taken note of by us in extenso, which led to the issuance of the impugned Notifications, we are unable to countenance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

palm oil is largely imported. Since the import price of crude palm oil has been much less than the price of coconut oil, the perception of Coconut growers in the State of Kerala was that it was affecting their livelihood. It is a matter of record that there are approximately 35 lakhs farmers in the State of Kerala who sustain their livelihood on Coconut crop. Therefore, it becomes their life sustaining crop. The Coconut crop covers more than 9 lakhs hectares in Kerala and contributes to nearly 3 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

06, to 12% in September 2007 and 0.6% in October 2007. The Board also observed that the import of palm oil in one particular year had a cascading downward impact on coconut oil prices in the subsequent years. For example, the huge import of 1,53,513 tonnes of palm oil in 2004-05 had led to a price decline in coconut in 2005-06 and 2006-07. While the average price of coconut oil is ₹ 6,155/- per quintal in 2004-05, in 2005-06, it declined sharply to ₹ 4,978/- per quintal with further .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore, instant step was taken. When a particular decision is taken in the interest of the said farmers which are marginalized section of the society, more so for their survival, this policy decision of the Central Government provides a complete rational in support of the decision having nexus with the objective sought to be achieved. 12. No doubt, the writ court has adequate power of judicial review in respect of such decisions. However, once it is found that there is sufficient material for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y or irrational and; it is taken in public interest, the Court has to respect such a decision of the Executive as the policy making is the domain of the Executive and the decision in question has passed the test of the judicial review. In Union of India v. Dinesh Engineering Corporation (2001) 8 SCC 491, this Court delineated the aforesaid principle of judicial review in the following manner: there is no doubt that this Court has held in more than one case that where the decision of the authorit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nreasonableness, bearing in mind the material on record. Any decision be it a simple administrative decision or policy decision, if taken without considering the relevant facts, can only be termed as an arbitrary decision. If it is so, then be it a policy decision or otherwise, it will be violative of the mandate of Article 14 of the Constitution. 13. The power of the Court under writ jurisdiction has been discussed in Asif Hameed and Others. v. State of Jammu and Kashmir and Others 1989 Supp (2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unction within their own spheres demarcated under the Constitution. No organ can usurp the functions assigned to another. The Constitution trusts to the judgment of these organs to function and exercise their discretion by strictly following the procedure prescribed therein. The functioning of democracy depends upon the strength and independence of each of its organs. Legislature and executive, the two facets of people's will has no power over sword or the purse nonetheless it has power to e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mposed discipline of judicial restraint. xxx xxx xxx 19. When a State action is challenged, the function of the court is to examine the action in accordance with law and to determine whether the legislature or the executive has acted within the powers and functions assigned under the Constitution and if not, the court must strike down the action. While doing so the court must remain within its self-imposed limits. The court sits in judgment on the action of a coordinate branch of the government. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in policy matters is reiterated in State of Orissa and Others v. Gopinath Dash and Others (2005) 13 SCC 495: 5. While exercising the power of judicial review of administrative action, the Court is not the Appellate Authority and the Constitution does not permit the Court to direct or advise the executive in the matter of policy or to sermonise qua any matter which under the Constitution lies within the sphere of the legislature or the executive, provided these authorities do not transgress thei .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t appear to be agreeable to the Court, it cannot interfere. 6. The correctness of the reasons which prompted the Government in decision-making taking one course of action instead of another is not a matter of concern in judicial review and the Court is not the appropriate forum for such investigation. 7. The policy decision must be left to the Government as it alone can adopt which policy should be adopted after considering all the points from different angles. In the matter of policy decisions .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be permissible by this Court in Gopal Narain v. State of Uttar Pradesh and another AIR 1964 SC 370, held as under: 11. Looking at the policy disclosed by Sections 7 and 8 and Section 128 of the Act and applying the liberal view a law of taxation receives in the application of the doctrine of classification, it is not possible to say that the policy so disclosed infringes the rule of equality. This Court in more than one decision held that equality clause does not forbid geographical classificati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e can make a territory within a city a unit for the purpose of taxation. So, the impugned section in permitting in the matter of taxation geographical classification, which has reasonable relation to the object of the statute, namely, for providing special amenities for a particular unit the peculiar circumstances whereof demand them, does not in any way impinge upon the equality clause. 16. We would also like to refer to the judgment of this Court in the case of Premier Tyres Limited v. Kerala .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ities should be viewed with greater latitude than laws touching civil rights such as freedom of speech, religion etc. It has been said by no less a person than Holmes, J., that the legislature should be allowed some play in the joints, because it has to deal with complex problems which do not admit of solution through any doctrinaire or strait-jacket formula and this is particularly true in case of legislation dealing with economic matters, where, having regard to the nature of the problems requ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

there are good reasons for judicial self-restraint if not judicial deference to legislative judgment. The legislature after all has the affirmative responsibility. The courts have only the power to destroy, not to reconstruct. When these are added to the complexity of economic regulation, the uncertainty, the liability to error, the bewildering conflict of the experts, and the number of times the judges have been overruled by events - self-limitation can be seen to be the path to judicial wisdom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eted experience . Every legislation particularly in economic matters is essentially empiric and it is based on experimentation or what one may call trial and error method and therefore it cannot provide for all possible situations or anticipate all possible abuses. There may be crudities and inequities in complicated experimental economic legislation but on that account alone it cannot be struck down as invalid. The courts cannot, as pointed out by the United States Supreme Court in Secretary of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and abuses. Indeed, howsoever great may be the care bestowed on its framing, it is difficult to conceive of a legislation which is not capable of being abused by perverted human ingenuity. The Court must therefore adjudge the constitutionality of such legislation by the generality of its provisions and not by its crudities or inequities or by the possibilities of abuse of any of its provisions. If any crudities, inequities or possibilities of abuse come to light, the legislature can always step .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e stringent tax laws and the efforts of the tax department are not likely to disclose their unaccounted money without some inducement by way of immunities and exemptions and it must necessarily be left to the legislature to decide what immunities and exemptions would be sufficient for the purpose. It would be outside the province of the Court to consider if any particular immunity or exemption is necessary or not for the purpose of inducing disclosure of black money. That would depend upon diver .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mponderables that would enter into the determination that it would be wise for the Court not to hazard an opinion where even economists may differ. The Court must while examining the constitutional validity of a legislation of this kind, be resilient, not rigid, forward looking, not static, liberal, not verbal and the Court must always bear in mind the constitutional proposition enunciated by the Supreme Court of the United States in Munn v. Illinois 94 US 13, namely, that courts do not substitu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd may justify, if they do not require, rough accommodations, illogical it may be, and unscientific. But even such criticism should not be hastily expressed. What is best is not always discernible, the wisdom of any choice may be disputed or condemned. Mere error of government are not subject to our judicial review. It is true that one or the other of the immunities or exemptions granted under the provisions of the Act may be taken advantage of by resourceful persons by adopting ingenious method .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

idance not intended by the legislature, the Act can always be amended and the abuse terminated. We are accordingly of the view that none of the provisions of the Act is violative of Article 14 and its constitutional validity must be upheld. 18. The aforesaid principle is echoed with equal emphasis in Balco Employees' Union (Regd.) v. Union of India and Others (2002) 2 SCC 333 in the following manner: 46. It is evident from the above that it is neither within the domain of the courts nor the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with economic decisions as it has been recognised that economic expediencies lack adjudicative disposition and unless the economic decision, based on economic expediencies, is demonstrated to be so violative of constitutional or legal limits on power or so abhorrent to reason, that the courts would decline to interfere. In matters relating to economic issues, the Government has, while taking a decision, right to trial and error as long as both trial and error are bona fide and within limits of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

xx Conclusion 92. In a democracy, it is the prerogative of each elected Government to follow its own policy. Often a change in Government may result in the shift in focus or change in economic policies. Any such change may result in adversely affecting some vested interests. Unless any illegality is committed in the execution of the policy or the same is contrary to law or mala fide, a decision bringing about change cannot per se be interfered with by the court. 93. Wisdom and advisability of ec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2001. 19. Insofar as judgment of Calcutta High Court in Kalindi Woolen Mills (P) Ltd. (supra) is concerned, we have our reservations on the correctness thereof wherein the High Court found that Notification dated 28.04.1989 allowing imports of Woolen rags, Synthetic rags, Shoddy wool through two ports only, namely, Bombay and Delhi ICD. In any case, insofar as argument based on Article 14 is concerned, the said judgment is distinguishable as in that case the Court did not find any intelligible b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt case, as already pointed out above, the respondents have been able to demonstrate intelligible basis for issuing the impugned Notifications having rational nexus with the objectives sought to be achieved. We, thus, reject the arguments based on Article 14 of the Constitution. 21. The argument of Mr. Naphade to the effect that interests of consumers is equally important which is not taken into consideration needs an outright rejection for more than one reason. In the first place no such case w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of farmer class in the State of Kerala and, therefore, they are in public interest, this argument is of no avail. 22. With this, we advert to the other arguments, namely, whether the Notifications are ultra vires of Section 3 of the Act. Our discussion has to, necessarily, start by noticing the provision of Section 3, which reads as under: 3. Powers to make provision relating to imports and exports. - (1) The Central Government may, by Order published in the Official Gazette, make provision fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n case of import or export of services or technology, only when the service or technology provider is availing benefits under the foreign trade policy or is dealing with specified services or specified technologies. (3) All goods to which any Order under sub-section (2) applies shall be deemed to be goods the import or export of which has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962) and all the provisions of that Act shall have effect accordingly. (4) Without prejudice .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the power conferred under Section 3(1) of the Act is not restricted merely to prohibiting or restricting imports at the point of entry but extends also to controlling the subsequent disposal of the goods imported. It is for the appropriate authority and not for the Courts to consider the policy, which must depend on diverse considerations, to be adopted in regard to the control of import of goods. The import of goods can be controlled in several ways. If it is desired that goods of a particular .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

made of those goods. It follows therefore that the persons licensed to import goods up to a certain quantity should be amenable to the orders of the licensing authority with respect to the way in which those goods are to be utilised. If the licensing authority has no such power, its control over the import cannot be effective. It may have considered it necessary to have goods imported for a particular purpose. If it cannot control their utilisation for that purpose, the imported goods, after im .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed for the purpose for which their import was considered necessary in the interests of the country. 24. We may also point out that proviso to sub-section (2) as well as sub-section (4) were inserted by Act 25/2010 w.e.f. 27.08.2010. In any case, we are primarily concerned with the interpretation of sub-sections (1) and (2) of Section 3 as far as present case is concerned. Sub-section (1) empowers the Central Government to make provision for the development as well as regulation of foreign trade .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

itating imports whereas in the present case, it was to curb the imports insofar as ports in Kerala are concerned. Sub-section (2) of Section 3 further empowers the Central Government to make provision for: (i) prohibiting; (ii) restricting; or (iii) otherwise regulating 'the import or export of goods or services or technology'. It can be done in all cases or in specified classes of cases. The submission of Mr. Naphade was that such provisions prohibiting, restricting or otherwise regulat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the same in the territory of India. Therefore, sub-section (2) is with reference to goods and not with place. He also submitted that the expression 'otherwise regulating' referred to licence etc. by which the import could be regulated and had nothing to do with the 'place'. Section 5 which existed at the relevant time reads as under: 5. Export and import policy. - The Central Government may, from time to time formulate and announce, by notification in the Official Gazette, the ex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ign trade policy shall apply to the goods, services and technology with such exceptions, modifications and adaptations, as may be specified by it by notification in the Official Gazette. 25. Mr. Naphade submitted that proviso which is added in the new Section 5 for the first time relates to the place and since it was conspicuously absent in the old provision, it could clearly be inferred that Section 5 as it stood at the relevant time had no bearing as far as place of import and export policy is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

case of Kalindi Woolen Mills (supra) has specifically held to be so while inculcating Sections 3 and 5 of the Act. 26. These were countered by Mr. Panda, learned senior counsel for the respondents by arguing that the impugned Notifications may be considered with reference to Section 3(2) of the Act not in isolation, but on a harmonious construction of the same with reference to the statement of objects and reasons to the Act along with Sections 2(e), 3(3) and 5 of the Act along with Sections 7 a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pal questions involved herein. 26. A citizen of India has a fundamental right to carry out the business of export, subject, of course to the reasonable restrictions which may be imposed by law. Such a reasonable restriction was imposed in terms of the 1992 Act. 27. The purport and object for which the 1992 Act was enacted was to make provision for the development and regulation of foreign trade inter alia by augmenting exports from India. While laying down a policy therefor, the Central Governme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d in the manner provided for under Section 5 of the 1992 Act. The Central Government in exercise of the said power announced its Foreign Trade Policy for the years 2004-2009. It also exercised its power of amendment by issuing the Notification dated 27.06.2006. Export of all commodities which were not earlier prohibited, therefore, was permissible till the said date. xx xx xx 43. We are, however, not oblivious of the fact that in certain circumstances regulation may amount to prohibition. But, o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ve measures. xx xx xx 46. The terms, however, indisputably would be construed having regard to the text and context in which they have been used. Section 3(2) of the 1992 Act uses prohibition, restriction and regulation. They are, thus, meant to be applied differently. Section 51 of the 1962 Act also speaks of prohibition. Thus, in terms of the 1992 Act as also the policy and the procedure laid down thereunder, the terms are required to be applied in different situations where for different orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd all other relevant considerations have to be examined by the Central Government from time to time and rules in regard to export and import suitably adjusted. It would, therefore, be idle to suggest that there should be unfettered and unrestricted freedom of export and import or that the policy of the Government in regard to export and import should be fixed and not changed according to the requirements of the country. xx xx xx It was open to the Government, and indeed national interests made .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version